Minister unsure of K66mil bill

STATE Enterprises Minister William Duma admits that PNG Power Ltd (PPL) owes money to the Independent Power Producer (IPPs) “but we are not sure of the format they use to calculate the bills”.
According to PPL chairman McRonald Nale, the Government’s outstanding electricity bills as at June 1, was at K66,266,419.81.
Duma yesterday said: “The IPPs are owed some money.
“We don’t necessarily agree with the figures they’re talking about.
“We are not sure of the format they use to calculate bills.
“But they are providing power and we do owe them some money.”
He further spoke about the proposed Ramu Two Power Project to be built at a cost of around US$940 million (K3.28 billion).
To be located on the border of Morobe and Eastern Highlands, it would be constructed on a built-own-operate-transfer (Boot) model.
A Chinese Consortium, Shenzhen Energy Ltd and Sinohydro Corp Ltd, would develop the project once Treasurer Ian Ling- Stuckey gives the guarantee.
Duma said the two provincial governments and landowners would have 20 per cent each in the project after 25 years of its operation.
He said the remaining 60 per cent would be held by PNG Power.
“For the first time, our landowners (Morobe and Eastern Highlands) will have free carry equity in a power project,” he said.
“They don’t have to pay anything.
“Construction of the power project depends on the guarantee, once the Treasurer gives the guarantee and once Wafi agrees to buy power, it starts.”
Regarding domestic flight cancellations, Duma stressed on the safety of passengers as Air Niugini’s priority.
This week, the travelling public complained of flight cancellations at various airports around the country.
“When planes are not safe to be flown, flights have to be either downgraded or cancelled,” he said.
He assured that some of the cancellations were expected to be addressed next week when two aircraft come out of maintenance.
“They’ve been under maintenance for the past months and schedule is expected to return to normal,” he said.